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Sold for $3.26mm. Land sold for $2.995mm in 2005. So you get the house for free. On two waterfront acres. Yet another sign that Hamptons are not doing well. Sure layoffs and bonuses down 25-40% are going to help that.
This reported closing is very shaddy. There is no way 2 acres on Sag Pond trades less than $7M. There must have been another end to the bargain. The land itself in that area trades currently around $2.5M per acres (and this is not waterfront). There is a property 1/4 mile from there asking $22M for 3.8 acres on the same pond!! Let's be honest, Sagaponack is now more expensive than anywhere in the hamptons (save for Georgica Pond and Gin Ln)
I agree it is weird - but if I remember right I think this house is basically sitting right next to the road (which is incredibly busy). Still, you are right Flojo - seems very low. Maybe an inside deal? Or some other fact we do not know.
I know the property very well i looked to purchase it...
there are many logical reasons for the pricing...
1. The property is 2 acres, the only problem is the whole backyard is preserved wetlands/woods. It is not buildable or clearable.
2. The house which is brand new, was built on spec and is very traditional on the inside plus they built it way to big for the "usable" property maxing out the building envelope. The structure goes right up to the woods in the back leaving no backyard and no views because of the woods
3. The only lawn space is very small on the side yard where the pool is built leaving even less lawn space.
4. Right next to the side yard where the pool is built, there is an easement on the land with a path (which has not been maintained) for the public to be able to walk down to sagg pond which if it was to be used (although by the look of it it wont be) kills the privacy of the side yard where entertaining would take place.
5 This house has been on the market for about 6 or 7 years since the developer ( A north of the highway spec builder) bought the property and built on it. Although it is about 90% finished there are still electrical and plumbing issues that need to be finished and dealt with plus a house sitting unused for that long might need all the appliances to be gutted and new ones installed because i know from experience with building that if you leave appliances like dishwashers and such unused for that long they do tend to breakdown from the lack of use.
6. THIS IS THE KICKER**** Because the house wasn't ever finished by the developer and because it sat for so long the developer went bust and the house has had a lis pendens...the big problem however is that due to the house being unfinished there is NO C/O which means that anyone that wants to buy this property must come in all CASH because no bank will lend for a house with no C/O
All the facts on the table i think whoever bought the property was smoking rocks unless they are an end user that doesn't mind knocking down a brand new house and building a smaller one to allow more usable property. Even still the town will never give permits to clear the acre + going down to the water of ugly brush leaving absolutely NO views of the water and only allowing a small path to be cleared.
hope this clears everything up...no exception to all of the wishful thinkers that think the hamptons are "not doing so well" and that wall street bonuses being lower on average really are putting a damper on the market...believe me i wish this were the case but the rich will still keep getting richer and the top players bonuses are still major $$$ and the high end real estate market out in the hamptons 5MM+ sees contracts everyday and that is why i still havent found a house out here because i am still looking at SOH knockdowns for 5MM and i can offer 3.5MM all day and get laughed at....
thanks LLNYC - I knew there had to be an explanation!
excellent synopsis. who was the builder?
the broker wouldn't disclose the name all that was said was he was a "north of the highway spec builder"
All interesting info. But in the end it sold for what it sold for - and that's what the land sold for in 2005 - and that's now a comp for the area. If someone is buying a 3.2mm weekend house then they should be able to pay cash for it, get CO, then get mortgage to refi out 50-70% of basis - if you're stretching (ie you don't have 3.2 cash) to buy 3.2 weekend house in this market you're a complete idiot.
I don't know about you but i don't keep 3.2MM in the bank to sit and make no interest...I also don't know about you, but primary residence or weekend house, i would NEVER pay CASH for ANY piece of real estate by your own admission "in this market." I can't help but feel like I am probably not the complete idiot here for keeping my money elsewhere while you or anyone else choose to leave your money in the bank... But than again maybe your pockets are sooo deep that you have no choice but to keep a couple million sitting in the bank for an all CASH 3 million dollar project. If so, GOD BLESS and i hope to be right there with you someday. ;)